1) FCCBs are quasi-debt instruments that give investors the option to convert bonds into equity shares of the issuing company, providing downside protection of guaranteed bond payments and upside potential if the stock price appreciates. 2) RBI guidelines state that Indian companies can issue FCCBs up to $500M annually, subject to certain criteria like minimum net worth and maturity periods of 3-5 years. FCCBs can be issued through automatic or RBI approval routes. 3) FCCBs offer benefits to both companies and investors. Companies raise capital in foreign currency at lower interest rates than market rates. Investors receive attractive yields and potential returns if the stock price exceeds the preset conversion price upon maturity.